@Oliver_Clingain All my teams are 1099s. I scaled from 0 to $60k/mo in about 12 months. Moved fast and some things broke. Lesson learned and I made sure it would never happen again.
The biggest setback I experienced in my first cleaning business was losing my top grossing team
I lost up to 40% of my revenue over the following months because I couldn’t fulfill the demand they used to handle for me
Turned out to be my biggest lesson in running any sort of business: overconcentration is a LIABILITY disguised as STABILITY
If one team walking away or one marketing channel shutting you out can wipe out a big portion of your revenue or profit, you don’t have a durable business
@smbportfolioguy Yes. Micro family-run cleaning business with a handful of employees. They used to handle all my high margin post construction cleans which have always been a big portion of my book. Took weeks before I could find a reliable teams that could handle those jobs
I’ve probably seen under the hood of more cleaning businesses across diverse markets and operating conditions than almost anyone else in the industry.
Having dozens of private Slack channels and monthly coaching calls with other operators has given me an incredible edge in developing my own pattern recognition and decision-making.
There’s tons of value in seeing how different people approach the same problems, and understanding why a solution that works in one market may not work in another.
The result is a compounding feedback loop and pattern library built from dozens of real businesses, both smaller and larger than mine, that I can draw from when helping owners solve their own problems.
@smbportfolioguy Good question though. These are illustrative numbers for simplicity as there are other factors that come into play, such as frequency discounts. Your monthly client may get 10% off but bi-weekly would be 15% off. Not exactly double the gross profit in practice but close enough.
I trash talk LSA every day but the math behind it still makes sense in house cleaning if you have a strong funnel and backend offer
We all know LSA is full of price shoppers and tire-kickers, but let’s say you run the math and figure out it cost you ~$100 per converted customer (yes, that’s high, just using it for illustration)
At face value, that can look brutal
A $300 one-time deep clean might gross you $150 after labor (pretty good)
If $100 of that went toward acquiring the customer, you’re left with $50 (not so good)
Not exactly exciting, but that’s your frontend offer
The real money is in what happens after that first clean (that is: your backend offer)
Let’s say you convert some one-time deep-clean customers into monthly recurring customers at $150/visit
Each recurring clean nets you $75 per visit after labor
You’ve already acquired the customer, so there’s no additional CAC
If they stay for a full year, each customer generates another 12 * $75 = $900 in profit (double that if they're bi-weekly)
Now look at 10 LSA customers, assuming you upsell ~20% of them to recurring:
10 closed customers * $100 CAC = $1K in acquisition cost
If 2 of those 10 convert to monthly:
2 * $50 = $100 frontend profit from one-time deep cleaning work
2 * $900 = $1.8K recurring profit from monthly cleans
That’s $100 + $1.8K = $1.9K in total profit from $1K in LSA spend (pretty solid for such a competitive channel)
If those two customers had been converted to bi-weekly instead, that becomes $3.8K profit from the same $1K in LSA spend (excellent return)
And that's not even including the other backend upsells like quarterly fridge deep cleans, window cleaning, or the annual spring deep clean
This is why looking at LSA through immediate "ROAS" can be misleading
If you don't have a proper backend funnel you might barely make money or even lose money on those one-time jobs
For people starting out that is a scary thought, but the operators who understand LTV and LTV:CAC, it's a deal they're willing to make every day
TLDR; LTV:CAC is the north store. If your backend is strong, the customer that look expensive to acquire can be worth multiples of what you paid to acquire them. With a large enough sample, you stop worrying about the economics of each individual customer and start looking at the aggregate result
@smbportfolioguy Bi-weekly is every second week (2x/month). It's not higher margin, you just service the customer twice per month rather than once, meaning you pocket double the gross profit at the end of the month.
The goal isn’t to hide behind an excruciatingly long and complex page nobody will read. It’s to provide clear and detailed terms that customers can review before deciding whether they want to transact with you. How much you want to spell out is up to you. "Too long didn't read" isn't a valid argument to a bank.
My tweet was more about businesses that write a few generic lines before launching then grow and evolve without ever updating their terms to reflect how the business actually operates today. That’s how you end up losing chargebacks or getting screwed by a scammer who actually took the time to read your terms and realized there are massive holes they can exploit
Too many cleaning business owners (and other home service biz owners equally) treat their Terms of Service as a box to check when they launch their website
They throw together some generic terms because the only thing they care about at that point is getting their first few customers
The irony is they probably spent more time designing their logo than thinking through and stress-testing their Terms of Service
But then the business grows to $50k, $100k, even $1M+ months, and they're still operating under the same terms they threw together when they were starting out
The thing is you don't really think about your Terms of Service when everything is going well. You think about them when a customer disputes a charge, demands a refund, or says your team damaged something and threatens legal action
That's when all those little details suddenly matter.
Does your guarantee actually cover this situation? What happens if the customer isn't home? What happens if something gets damaged? What are the rules around cancellations, refunds, chargebacks, etc? Your terms should spell all of this out CLEARLY but also in GREAT DETAIL
Go check your terms page right now and give it an honest assessment. Or think back to the % of chargebacks you win vs. lose. What happened? And are your customers actually accepting your Terms of Service when they book? If not, that's a major problem. You might have solid terms, but if the customer never agreed to them, you're potentially servicing them with very little protection when something goes wrong
In any case, I encourage you to fire up Claude or ChatGPT and spend a few hours stress-testing your terms and flow
After every revision, ask it to poke holes in them from the perspective of a bank reviewing a chargeback or a lawyer representing the customer
Keep doing it until you can't find many more holes
This is one area where I'd rather overkill it than realize I missed something important that could have been mitigated
Helped a client set up their cleaning business from scratch
Official "soft launch day" was this Friday
Turned on ads going into the weekend with a $20/day budget to get the ball rolling
Saturday afternoon he calls me saying he closed a $1,100 post construction clean for a fully renovated condo
I told him how awesome that was as I've never seen someone's very first cleaning job be a post construction clean
Then I got news today that the three cleaners we'd onboarded earlier that week all passed because the project was too big
🫠
@testNconquest Get into coaching, it partially helps fulfill this
If money wasn’t such an important thing and they weren’t so poorly paid, I would’ve become a teacher
My best decision in 2026 was choosing to spend more time studying consciousness. It’s a deep, complex, and humbling journey that forced me to question a lot about myself and the way I engage with the physical world.
The manifestation girlies are definitely onto something.
There is asymmetric upside in developing a thesis and acting on it before it becomes consensus
Which business to build, which marketing channels to bet on, where to allocate capital/cash, where to live/relocate, which content to consume
Holding a non-consensus view can be VERY uncomfortable
Sometimes you’ll be wrong and sometimes you’ll wait years to be proven right
But if you’re right and held on, those bets are what separate average outcomes from the life you dream of